A UK-based company recently beaten by Germany to a big trainmaking contract has been selected to supply electric trains in a £180m deal.

The Southern train company said it had chosen Derby-based Bombardier to supply 116 electric rolling stock vehicles.

This order has the provision of an extra 140 vehicles which can be called in the event that further investment opportunities are identified, bringing the potential total order value up to around £385m.

When the contract is placed, the new trains will be used initially on the north-south, cross-London Thameslink route, facilitating the release of existing trains to newly electrified routes.

It was for an order to supply other trains to the Thameslink project that Bombardier, amid some controversy, lost out to Siemens of Germany, prompting job losses at Derby.

Southern's managing director, Chris Burchell said: "We have worked extremely hard to be an effective delivery partner to the Department (for Transport) and we are very pleased to have reached this important milestone in the procurement of new rolling stock. This will provide essential capacity to allow our industry to grow."

The transport secretary, Patrick McLoughlin said: "Increasing the number of trains on the network not only benefits passengers but everyone, as the railways are an important engine for economic growth in our country.

"The government has worked closely with Southern to enable this critical stage of the project to be reached and I look forward to these trains being delivered onto the network."

Once the new Thameslink trains are delivered the new Bombardier vehicles will also be used on services on newly electrified routes. The Bombardier trains are expected to be delivered to Southern in 2015.